Gasoil demand in Germany has risen sharply following Israel's attack on Iran in the early hours of 13 June. The attack triggered a sharp increase in crude and gasoil futures and prompted German traders to buy ahead of possible further price rises.
The rise in demand coincides with relatively low import availability into northern German ports, largely because of reduced arrivals from countries east of the Suez Canal. The arbitrage window from east of Suez to northwest Europe was closed from early May to the first week of June, limiting flows into the region at a time when German demand had been weakening.
Northern German ports received 67,000 b/d of diesel from the US and the Netherlands during 1–13 June — a daily average increase from May, but still 44pc lower than in April.
Ice Brent crude futures rose by more than 10pc at one point on 13 June, while Ice gasoil futures jumped by up to $60/t. The price surge fed through to the German market, where national average prices rose by nearly €3.30/100 litres for heating oil, €3.20/100l for diesel and €2.40/100l for gasoline.
Domestic traders responded by stepping up purchases ahead of the weekend, anticipating further price increases should the conflict between Israel and Iran escalate.
